GREEN MARKETING The Context of Indonesia and Philippines Maria Yosephine Dwi Hayu Agustini Co-Authors: Sentot Suciarto Athanasius Berta Bekti Retnawati Anna Marie R. Baloran April Joan J. Bagano Ana Lisa R. Tan PREFACE This book is specifically designed to present the so-called effective green marketing strategy designed as the result of the research. The effective green marketing strategy is created based on green marketing practices and the management’s experience, issues, challenges, and opportunities in marketing the green products of the selected companies in Indonesia and Philippines. The strategy may not be generalized since there is no single green marketing strategy that is fit for every company (Ginsberg & Bloom, 2004). It however provides an insight toward green marketing strategy in a particular context that can be the basis for developing the similar one in different context. The initial motivation of the research is to contribute to providing knowledge on green marketing in the context of developing countries. The green marketing strategy is outlined and presented in diagram for better visualization of the strategy and its connection to the concept underlying the strategy formulation. Drawbacks may still exist and thus constructive suggestions are gratefully accepted for the strategy is in its best formulation. ii CONTENTS PREFACE .................................................................................................................. ii CONTENTS .. ......................................................................................................... iii1 CHAPTER 1 INTRODUCTION ................................................................................ 1 Why green marketing strategy? ............................................................................... 1 Manufacturing companies we studied ..................................................................... 3 Profile of the selected companies ............................................................................ 4 Profile of the selected companies in Indonesia ..................................................... 4 Profile of the selected companies in Philippines .................................................. 8 Comparative description ....................................................................................... 11 CHAPTER 2 GREEN BUSINESS AND GREEN INITIATIVE .............................. 13 What is Green Business? ....................................................................................... 13 Green Initiatives: Reasons for Going Green .......................................................... 15 Greenwashing ....................................................................................................... 18 Understanding the Selected Companies on Green Business and Green Practices .. 20 The Green Initiatives of the Selected Companies .................................................. 25 Between Understanding and Practices ................................................................... 26 CHAPTER 3 GREEN MARKETING MANAGEMENT ......................................... 28 Introduction to Green Marketing ........................................................................... 28 Toward Green Marketing ...................................................................................... 29 Challenges in practicing green marketing .............................................................. 32 Holistic approach of green marketing .................................................................... 35 Issues in practicing green marketing ..................................................................... 36 Green marketing practices in developing countries ............................................... 37 Green issues in the selected companies ................................................................. 38 CHAPTER 4 GREEN SEGMENTATION, TARGETING, AND POSITIONING ... 42 Green segmentation............................................................................................... 42 Green targeting ..................................................................................................... 47 Green positioning .................................................................................................. 51 iii Segmentation, targeting, and positioning of the selected companies...................... 52 Are they green addressing green segments? .......................................................... 59 CHAPTER 5 GREEN PRODUCT ........................................................................... 61 Green product and environmental concern ............................................................ 61 Green product and consumer’s satisfaction ........................................................... 65 Green packaging ................................................................................................... 66 Eco-labeling .......................................................................................................... 66 Products of the selected companies ....................................................................... 67 CHAPTER 6 GREEN PRICING .............................................................................. 73 Green pricing ........................................................................................................ 73 Green price ........................................................................................................... 74 Do the selected companies apply green on their ricing? ........................................ 75 Common practice on pricing ................................................................................. 77 CHAPTER 7 GREEN PROMOTION ...................................................................... 79 Promotion and communication .............................................................................. 79 Advertising and green advertising ......................................................................... 80 Green promotion ................................................................................................... 81 Green promotion of the selected companies .......................................................... 83 The greenness of the promotions ........................................................................... 86 CHAPTER 8 GREEN DISTRIBUTION .................................................................. 88 Managing distribution ........................................................................................... 88 Green distribution ................................................................................................. 89 Distribution practices of the selected companies ................................................... 90 Non-green distribution practices ........................................................................... 93 CHAPTER 9 GREEN MARKETING STRATEGY: A PROPOSED MODEL ........ 95 Green in Marketing Strategy ................................................................................. 95 Green technology ............................................................................................... 96 Green marketing mix .......................................................................................... 96 Green management ............................................................................................ 96 Green supply chain management ....................................................................... 97 iv Types of green marketing strategy ........................................................................ 97 Five strategies for environmental marketing.......................................................... 99 Phenomena on green marketing practices ............................................................ 102 The proposed marketing strategies to promote green products ............................ 108 CHAPTER 10 THE FUTURE OF GREEN MARKETING ................................... 111 REFERENCES ...................................................................................................... 114 v CHAPTER 1 INTRODUCTION Even though we have been studying marketing for years, but our journey to specifically green marketing have just started in 2016. Tracing back the concept of green marketing, we found abundance information about it. This fact is our motivation to go forward in studying green marketing in particularly in the context of developing country since green marketing and green business have studied widely in developed countries and still relatively limited study in the developing countries. Our journey began with a collaborative research with our university partner in the Philippines under the big theme of green business. We addressed specifically green marketing in each country (Indonesia and Philippines) under a comparative study. The intention of the research was to understand green marketing strategy of companies in both countries and to propose a model of green marketing strategy in a context of developing country. This book is intended to share interesting findings of the study that can contribute in enhancing discussions about green business in general and green marketing in particular with specific context of developing economies. Why green marketing strategy? Green marketing practices are not yet embraced and applied by many businesses around the world (Cekanavicius, Bazyte, & Dicmonaite, 2014). Motivations to embrace it are quite varied. They